So Far, U.S. Sanctions Over Ukraine May Be Inflicting Only Limited Pain on Russia
By PETER BAKER and ANDREW E. KRAMER, NYT
MAY 2, 2014
WASHINGTON — As it tries to punish Moscow for its intervention in Ukraine, the White House asserts that the sanctions it has imposed have had a “significant impact” on Russia’s economy, but their real effect so far, according to economic specialists, appears to be more psychological than tangible.
White House officials have pointed to the fall of the Russian ruble and Moscow stock markets as evidence of the success they have had in pressuring the Kremlin. Yet the ruble and Russian markets fell before President Obama began imposing sanctions. Today, in fact, both the ruble and the markets are slightly stronger than they were before the first sanctions were announced.
Russia’s economic downturn predated any action by the United States or Europe and, to some extent, predated the Ukraine crisis. Specialists said the volatility surrounding Ukraine has clearly aggravated Russia’s economic problems by sapping international confidence, punishing its credit standing and increasing investor wariness, but it is not clear how much of that stems specifically from the sanctions.
Just this week, the International Monetary Fund lowered its growth projection for Russia for the year to 0.2 percent and declared that the country is in recession, citing the uncertainty of the confrontation with the West. But the fund’s top Moscow official attributed the slowdown as much to the fear of more sweeping sanctions that may be imposed in the future as to the impact of the limited measures taken to date.
(More here.)
WASHINGTON — As it tries to punish Moscow for its intervention in Ukraine, the White House asserts that the sanctions it has imposed have had a “significant impact” on Russia’s economy, but their real effect so far, according to economic specialists, appears to be more psychological than tangible.
White House officials have pointed to the fall of the Russian ruble and Moscow stock markets as evidence of the success they have had in pressuring the Kremlin. Yet the ruble and Russian markets fell before President Obama began imposing sanctions. Today, in fact, both the ruble and the markets are slightly stronger than they were before the first sanctions were announced.
Russia’s economic downturn predated any action by the United States or Europe and, to some extent, predated the Ukraine crisis. Specialists said the volatility surrounding Ukraine has clearly aggravated Russia’s economic problems by sapping international confidence, punishing its credit standing and increasing investor wariness, but it is not clear how much of that stems specifically from the sanctions.
Just this week, the International Monetary Fund lowered its growth projection for Russia for the year to 0.2 percent and declared that the country is in recession, citing the uncertainty of the confrontation with the West. But the fund’s top Moscow official attributed the slowdown as much to the fear of more sweeping sanctions that may be imposed in the future as to the impact of the limited measures taken to date.
(More here.)
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